<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 19, 2000
i2 TECHNOLOGIES, INC.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 0-28030 75-2294945
- ---------------------------- ------------------ ------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
909 E. Las Colinas Blvd., 16th Floor, Irving, Texas 75039
- --------------------------------------------------- --------------
(Address of principal executive offices) (Zip Code)
Company's telephone number, including area code: (214) 860-6000
ITEM 5. OTHER EVENTS.
Filed as an exhibit hereto is the registrant's press release, dated
January 19, 2000 announcing results for the fourth quarter and year ended
December 31, 1999, and declaring a two-for-one stock split payable February 17,
2000 to shareholders of record on February 3, 2000.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits
99.1 Press release dated January 19, 2000.
Page 1
<PAGE> 2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
i2 TECHNOLOGIES, INC.
Dated: January 19, 2000 By: /s/ WILLIAM M. BEECHER
------------------------------
William M. Beecher
Executive Vice President and
Chief Financial Officer
-3-
<PAGE> 3
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
99.1 Press release dated January 19, 2000.
</TABLE>
<PAGE> 1
EXHIBIT 99.1
PRESS RELEASE [i2 LOGO]
i2 REPORTS RECORD Q4 AND 1999 RESULTS, DECLARES STOCK SPLIT
Quarterly Revenues of $175 million and EPS of $0.19 exceed expectations
DALLAS, TX
January 19, 2000
i2 Technologies, Inc. (Nasdaq: ITWO), the leading provider of intelligent
eBusiness solutions, today announced results for the company's fourth quarter
and year ended December 31, 1999. Total revenues, net income and fully diluted
earnings per share for the fourth quarter of 1999 grew to $175.3 million, $17.1
million and $0.19 per share, excluding charges of $1.7 million associated with
acquisitions. These results showed significant growth compared to fourth
quarter 1998 total revenues of $113.6 million, net income of $4.1 million, and
fully diluted earnings of $0.05 per share, excluding $0.6 million in
acquisition-related charges. Consensus EPS expectation reported by First Call
was $0.16.
License revenues increased 50% to $110.5 million for the fourth quarter of
1999, over $73.8 million for the same quarter a year ago. Total services and
maintenance for the fourth quarter increased to $64.7 million in 1999, compared
to $39.8 million in 1998.
Total revenues for the full year 1999 grew to $571.1 million, 55% greater than
the $369.2 total revenues for 1998. Excluding charges of $6.6 million
associated with acquisitions, net income for 1999 grew 134% to $30.1 million or
$0.36 per fully diluted share, compared to 1998 net income of $12.8 million and
$0.16 per fully diluted share, excluding charges of $7.6 million associated
with acquisitions.
"Our growth was driven by i2's solutions for intelligent eBusiness, which make
our customers more responsive to their customers' requirements, more efficient
in managing their supply chains, and more profitable by improving their
decision-making capabilities," said Sanjiv Sidhu, i2's founder and CEO.
As previously announced, i2 introduced TradeMatrix at the PLANET99 conference
in Las Vegas in October. TradeMatrix is the world's first intelligent eBusiness
portal to offer value-added services that span multiple digital marketplaces
and are tailored for buyers, sellers, designers and service providers. i2
introduced the first vertical community within TradeMatrix by announcing
HightechMatrix in December. HightechMatrix is a business-to-business
marketplace within TradeMatrix that offers hosted services specifically for the
high-tech industry. Compaq, Hewlett-Packard, Amkor and NCR were named as some
of the initial participants in HightechMatrix, and more companies related to
the high-tech industry are expected to become part of this intelligent digital
marketplace, which will yield greater benefits to the entire community.
Mr. Sidhu added, "As our customers are becoming more familiar with the
TradeMatrix offering and the value it will provide, we are seeing increased
interest from them toward forming meaningful relationships."
The company also announced that its Board of Directors has approved a
two-for-one stock split. The stock split will be effected as a 100% stock
dividend. Common stockholders of record on February 3, 2000, will receive one
additional share of common stock for each share of common stock held on the
record date. The stock dividend will be paid on February 17, 2000.
(MORE)
<PAGE> 2
PRESS RELEASE [i2 LOGO]
i2 REPORTS RECORD Q4 AND 1999 RESULTS, DECLARES STOCK SPLIT
(PAGE 2)
OTHER ANNOUNCEMENTS MADE BY i2 THIS QUARTER
PARTNERS:
i2 and Aspect Development, Inc. announced a partnership agreement to create a
comprehensive Product Lifecycle Management (PLM) solution that would optimize
manufacturers' product development processes from conception through design,
launch, production, through final phase-out. The agreement establishes a joint
R&D and business development team including executives from both companies that
will be responsible for crafting an end-to-end product lifecycle management
solution for sale by both companies. The joint solution will use Aspect's
eDesign for strategic product development coupled with i2's Product Lifecycle
Management modules for market requirements, portfolio planning, resource
planning and product transition planning.
i2 and The viaLink Company signed an agreement to provide a unique eBusiness
solution to multiple markets via i2's intelligent eBusiness portal,
TradeMatrix.com. In addition, i2 will become the supply chain partner on the
viaLink public exchange for consumer goods manufacturers, suppliers and
retailers.
i2 and RightWorks, the leading provider of e-procurement solutions, announced
that RightWorks will power the indirect material procurement execution of
TradeMatrix.com. With this agreement, RightWorks will be integrated within
TradeMatrix.
CUSTOMERS:
i2 and Sun Microsystems announced the first live implementation of RHYTHM
Marketplace Services(SM) for procurement collaboration with strategic suppliers.
Using i2's RHYTHM Marketplace Services, Sun can securely exchange critical
forecast information with its suppliers over the Internet and dramatically
improve its ability to provide products to their customers in a timely and
profitable manner. The RHYTHM Marketplace Services, implemented in a hosted
environment, produces quick time-to-market, reduced infrastructure costs and
improved collaboration.
Philips Consumer Electronics selected i2's RHYTHM(R) software as part of its
global business process re-engineering project. The solution provides
decision-making support across Philips' global supply chain, and forms the
foundation for any future e-commerce. Philips Consumer Electronics is a global
top three company in the fields of audio, video, communication and information
technology.
Barnes & Noble, Inc., the nation's largest bookseller, licensed i2's solutions
for intelligent eBusiness to ensure the highest level of customer satisfaction
at its retail locations worldwide and its online shopping site,
barnesandnoble.com. i2's solutions will link and optimize the inventory
management, warehousing and transportation systems of both Barnes & Noble's
retail stores and online site, enabling Barnes & Noble to dramatically enhance
its ability to fulfill orders on time.
The Home Depot licensed i2's intelligent eBusiness solutions to enhance its
supply chain management. The two companies have formed a strategic partnership
to jointly develop collaboration solutions that will further facilitate the
transfer of information and optimize the decision making between Home Depot and
its partner network of over 7,000 suppliers worldwide.
(MORE)
<PAGE> 3
PRESS RELEASE [i2 LOGO]
i2 REPORTS RECORD Q4 AND 1999 RESULTS, DECLARES STOCK SPLIT
(PAGE 3)
OTHER ANNOUNCEMENTS MADE BY i2 THIS QUARTER
i2 also announced the successful "go-live" of i2's solutions at the
Sherwin-Williams Company, the largest paint manufacturer, distributor and
retailer of coatings and related products in North America. Sherwin-Williams,
with sales of $4.9 billion in 1998, is using i2's RHYTHM solutions for supply
chain planning.
i2 announced the successful completion of the initial phases of a supply chain
project with British American Tobacco at its Southampton, UK plant. The project
uses live feeds from SAP's R/3 order entry system and the company's own data
capture system to plan and manage weekly demand in British American Tobacco's
export markets. The project is one of the first based on i2's Consumer Goods &
Retail template.
i2 and Alliant(R) Foodservice, one of America's largest food service
distributors, announced that Alliant will implement i2's RHYTHM Marketplace
Services. This solution will create an e-marketplace for Alliant's customers,
vendors and other trading partners to collaborate with each other by improving
customer responsiveness and reducing excess inventory costs. Alliant's
e-marketplace will be part of TradeMatrix.
i2 signed a contract with a division of Caterpillar Inc. to purchase i2's
eBusiness solutions. The RHYTHM solutions will allow Caterpillar's Building
Construction Products Division to help create an efficient, high velocity
environment, electronically linking the entire order fulfillment chain, and
will also benefit from TradeMatrix.com.
SPECIAL RECOGNITION:
i2's RHYTHM suite won the Most Important Product of 1999 award from
InformationWeek for its RHYTHM suite of solutions. InformationWeek honored i2
for its ability to help transform traditional businesses into e-businesses in
1999.
i2 was added to the Nasdaq-100 Index. The Nasdaq-100 Index reflects Nasdaq's
largest companies across major industry groups, including computer hardware and
software, telecommunications, retail/wholesale trade and biotechnology. The
addition was effective with the market open on December 20, 1999.
i2 was also awarded top honors from Semiconductor International's 1999 Editor's
Choice Best Product Awards Program. i2 was recognized for their innovative
RHYTHM suite of semiconductor solutions that are used to improve production
manufacturing operations and environmental responsibility in the semiconductor
industry.
PLANET:
PLANET99(SM), the high velocity business summit, founded by i2 Technologies and
sponsored by companies including Andersen Consulting, Compaq, Deloitte
Consulting, Ernst & Young, Hewlett-Packard, IBM, KPMG, Microsoft,
PricewaterhouseCoopers and Sun Microsystems, drew a record number of attendees
in 1999. The annual conference, which has experienced tremendous growth in
attendance since its inception in 1997, brought nearly 5,000 people to the
Venetian Hotel in Las Vegas, NV, October 10-13, 1999 to hear industry
luminaries such as Steve Ballmer, president of Microsoft Corporation, Bill Joy,
co-founder and chief scientist of Sun Microsystems and Sanjiv Sidhu, CEO of i2
Technologies speak.
(MORE)
<PAGE> 4
PRESS RELEASE [i2 LOGO]
i2 REPORTS RECORD Q4 AND 1999 RESULTS, DECLARES STOCK SPLIT
(PAGE 4)
ABOUT i2:
i2 is the leading global provider of intelligent eBusiness solutions. Founded
in 1988, i2's vision is to add $50 billion of value for its customers by the
year 2005. i2 is headquartered in Dallas, TX, has approximately 2,800 employees
and maintains offices worldwide. For additional information, visit i2 on the
Web at www.i2.com, or attend PLANET2000, San Diego, Oct. 8-11,
http://www.PLANET.i2.com, 1-877-4PLANET.
TradeMatrix(TM) is i2's dynamic Internet marketplace that provides an open
digital community powered by i2's advanced optimization and execution
capabilities for improved decision-making. TradeMatrix offers the broadest
spectrum of hosted services available enabling customers, partners, suppliers,
and service providers to conduct business in real-time, and to make more
profitable decisions.
CAUTIONARY LANGUAGE:
This press release may contain forward-looking statements that involve risks
and uncertainties, including statements regarding the expected delivery and
benefits of use of the Company's products, anticipated benefits from
relationships with other companies, and the joint development of solutions.
Among the important factors which could cause actual results to differ
materially from those in the forward-looking statements are competition, market
demand, technological change, strategic relationships, recent acquisitions,
international operations and general economic conditions. For additional
discussion of factors that could impact the Company's financial results, please
refer to the Company's recent filings with the SEC, particularly the Form 8-K
filed November 30, 1999 and the Form 10-Q filed November 15, 1999.
CONTACT:
Brent Anderson Lara Kohl
i2 Technologies, Inc. i2 Technologies, Inc.
[email protected] [email protected]
(469) 357-6012 (469) 357-3246
<PAGE> 5
PRESS RELEASE [i2 LOGO]
i2 TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
---------------------------- ----------------------------
1998 1999 1998 1999
---------- ---------- ---------- ----------
(unaudited)
<S> <C> <C> <C> <C>
Revenues:
Software licenses $ 73,802 $ 110,546 $ 234,316 $ 352,597
Services 25,613 43,505 91,726 147,893
Maintenance 14,177 21,217 43,115 70,620
---------- ---------- ---------- ----------
Total revenues 113,592 175,268 369,157 571,110
========== ========== ========== ==========
Costs and expenses:
Cost of software licenses 2,286 6,160 7,967 17,981
Cost of services and maintenance 24,829 34,751 77,459 125,934
Sales and marketing 39,064 58,625 129,978 194,752
Research and development 26,828 37,172 94,199 132,278
General and administrative 12,340 14,134 38,191 53,188
In-process R&D and acquisition-related expenses 574 1,727 7,618 6,552
---------- ---------- ---------- ----------
Total costs and expenses 105,921 152,569 355,412 530,685
---------- ---------- ---------- ----------
Operating income 7,671 22,699 13,745 40,425
Other income, net 1,663 3,223 8,753 7,642
---------- ---------- ---------- ----------
Income before income taxes 9,334 25,922 22,498 48,067
Provision for income taxes 5,829 10,507 17,279 24,552
---------- ---------- ---------- ----------
Net income $ 3,505 $ 15,415 $ 5,219 $ 23,515
========== ========== ========== ==========
Net income per share $ 0.05 $ 0.20 $ 0.07 $ 0.31
Net income per share, assuming dilution $ 0.04 $ 0.17 $ 0.07 $ 0.28
Weighted average common shares outstanding 71,227 77,025 71,794 75,209
Weighted average common shares outstanding,
assuming dilution 80,672 88,279 78,530 83,692
EXCLUDING IN-PROCESS RESEARCH & DEVELOPMENT
AND ACQUISITION-RELATED EXPENSES
Net income $ 4,079 $ 17,142 $ 12,837 $ 30,067
Net income per share $ 0.06 $ 0.22 $ 0.18 $ 0.40
Net income per share, assuming dilution $ 0.05 $ 0.19 $ 0.16 $ 0.36
</TABLE>
<PAGE> 6
PRESS RELEASE [i2 LOGO]
i2 TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
December 31, December 31,
1998 1999
------------- -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 62,611 $ 454,585
Short-term investments 93,387 124,806
Accounts receivable, net 127,677 157,586
Prepaid and other current assets 9,357 10,576
Income tax receivable 50 31
Deferred income taxes 5,070 15,868
------------- -------------
Total current assets 298,152 763,452
Furniture and equipment, net 31,628 50,483
Deferred income taxes and other assets 15,028 47,614
------------- -------------
Total assets $ 344,808 $ 861,549
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,675 $ 20,039
Accrued liabilities 45,225 81,246
Deferred revenue 51,229 72,617
Current portion of debt 5,032 --
Income taxes payable 2,213 4,511
------------- -------------
Total current liabilities 115,374 178,413
Long term debt -- 350,000
Deferred income taxes 448 968
------------- -------------
Total liabilities 115,822 529,381
------------- -------------
Stockholders' equity:
Preferred Stock, $0.001 par value, 5,000,000 shares authorized,
none issued -- --
Common Stock, $0.00025 par value, 500,000,000 shares
authorized, 71,475,699 and 77,705,666 shares issued
and outstanding, respectively 18 19
Additional paid-in capital 214,940 297,902
Accumulated other Comprehensive Loss (833) (4,126)
Retained earnings 14,861 38,373
------------- -------------
Total stockholders' equity 228,986 332,168
------------- -------------
Total liabilities and stockholders' equity $ 344,808 $ 861,549
============= =============
</TABLE>
